Frequently Asked Questions

What is Land Options?

This is a product where the buyer is granted a right (but not the obligation unless stated otherwise) to buy the land in Kenya at a fixed price from the seller at a defined future date. The buyer hence pays a fee (option fee) to compel the seller to hold the parcel of land for them at a certain agreed price. The fee is normally a fraction of the value of the land and is the only assurance to the seller that the buyer is committed. The seller can be granted such selling rights by the buyer if the buyer accepts a fee offered by the seller. If this is the case, the buyer will have an obligation to buy if the seller decides to sell the property.

How will I profit from Land Layby Australia Pty?

Buying land on the outskirts of a big city and waiting until residential developers make it appreciate in value is a common practice worldwide. This strategy requires a lot of capital, patience and knowledge. Since Capital requirements are huge and the process demands prior experience, it is only practiced by wealthy groups. Land Layby Australia Pty Limited has now revolutionized this market and bridges all the gaps to land investments in Kenya including geographical barriers. We will do it with you, for you and better still, we will pass on some of the equity created when you exercise the land call option. You now have an opportunity to book a block of land in Kenya on the pathway of development whose value will appreciate exponentially.

Why pass on some of the equity created to me?

The Proceeds from sale of options enables us to engage in other development projects as we wait for the options to be exercised. This enables us to increase our sales and avoid bank interest repayment associated with our development projects.

Why pay option fee?

Payment of the option fee is the only assurance Land Layby Australia Pty Limited has that buyers of a land option will exercise the option.

Is the option fee refundable?

No it is not. The option can however be assigned to a third party at a fee greater than original option fee. The process of assignment is defined in the product contract.

What is original option fee?

The initial amount of money paid as option fee by the first Buyer.

How and when could one resell the option?

You can assign your option to anyone at a fee greater than what the initial purchase price was at any time 60 days before product expiry or as defined in the product contract. You cannot alter the product strike price. As the product approaches the settlement date, demand is likely to become more active since the initially predeveloped land appears more developed and is more appealing to the risk averse investors.

What does Land Layby Australia Pty Ltd use option fees for?

The Company has numerous costs associated with predeveloped land acquisition. The list is not exclusive but may include costs related to acquisition of land, marketing costs, administrative costs, land holding costs, costs related to development of roads as well as subdivision of land etc.

Why wait for several years before to settling the purchase price?

Buying Land Banking Kenya Options products ( A registered Trademark of Land Layby Kenya Limited) locks the property’s purchase price with just a fraction of the value of the property. You have the advantage of using the rest of the funds in other investment vehicles. If you were considering finance for your land purchase, Land Banking Kenya Option products will save you bank interest repayments which can be costly.

How will I profit?

Buyers pay an option fee to lock the price and will be entitled to all equity generated before expiry of the option. Land value in the pathway of development always appreciates.

Are estimated potential profits guaranteed?

As with any investment, we recommend that buyers obtain their own valuations and appreciate that high returns also correlate to low risks i.e. in the event the market falls, you have only committed a fraction of the price and can get out without losing the ‘whole’ purchase price.

Why does Land Layby Australia Pty Ltd sell options?

Selling land options gives Kenyans and non-Kenyans an opportunity to commence land ownership process by payment of a portion of the purchase price. This process reduces the period of time Land Layby Kenya Ltd funds are committed into a particular development. It also means we are able to commit to sell all our projects at inception. It is for this reason the buyers of the product are allowed to share profits from land value appreciation.

Do the blocks of land have titles?

All blocks of land available for sale have titles. In instances where no individual titles are available, the buyers of these options of predeveloped land in the process of subdivision approval will be notified prior to signing the contract. This happens time to time especially when demand for product is high and the proposed subdivision process is slow for one reason or the other.

Who owns the blocks of Land?

Land is owned by Land Layby Kenya Ltd and or its equity partners. Because of our reputation and brand confidence, some individual land vendors in Kenya choose to partner with Land Layby Kenya, the pioneers of Land Layby systems in Kenya.

Who owns Land Layby Australia Pty Ltd?

Land Layby Australia Pty Ltd (ABN 77 615 134 793) is an Australian Private Company, a subsidiary of Land Layby Holdings Kenya Limited.

Is Land Layby Australia Pty Ltd affiliated to any not for profit organization?

Land Layby Australia Pty Ltd seeks to participate in vibrant Corporate Social Responsibility projects. The company achieves this through Childland Australia, a charity organisation registered in Australia to help fund projects that promote child entrepreurship.

What is the completion date following option exercise?

Completion period from the signing of the Sale Agreement until payment of the balance of the purchase price in exchange for title documents is usually between 30 days to 90 days.

Do you have a dispute resolution process?

Disputes are resolved by an Alternate Dispute Resolution mechanism where an Arbitrator is appointed if the parties fail to resolve a dispute within 7 days after a notice of dispute is given.

Is there right to require rectification or right to terminate?

Land Layby has the right to terminate the contract if there is a breach by the purchaser and rectification is at the discretion of Land Layby Australia Pty Ltd where the purchaser is in default. If there is a dispute between the parties, then the Alternate Dispute Resolution mechanism applies.

What happens if I default instalment payment of option fee?

If an instalment payment is missed, all previous payments are forfeited and the option contract is at an end.

Are there any developmental risks?

Land Layby Australia Pty transacts blocks of land that have or are in the process of getting titles. Land Layby Australia does not develop any land. Appreciation in land value is a factor of surrounding infrastructure developments and overall area development performed by both individual developers and private corporate developers, hence is no foreseen developmental risks.

What is strike price?

The price agreed by both buyer and seller. This price is fixed after paying option fee.

What does “exercise the call option” mean?

One will Exercise call once they notify Land Layby Australia Pty Ltd their intention to complete purchase of land whose strike price was previously reserved by signing and consequent payment of option fee. Call options can only be exercised during call option period which is normally 60 days before expiry of the option or as defined in the product contract.